Melanie's story

Melanie Diamond-Manlusoc, co-founder of Flow State CoffeeBar, holds a Bachelor of Music Education from Michigan State University and an Associates of Applied Sciences of Patisserie and Baking from Le Cordon Bleu College of Culinary Arts, Chicago. While she was studying classical saxophone at MSU, she took a trip to northern Italy for a saxophone festival. There she fell in love with the rich, custard-based gelati of Emilia Romagna.
During a very successful career as a band director, she ran away to culinary school, opened her own gelato business, and quickly moved up the pastry ladder in Chicago’s finest kitchens. She was chef/owner of Gelato Vero and trained in the James Beard Award-winning and Michelin-starred kitchens of Blackbird, Avec, Henri, Japonais, Japonais by Morimoto, Spiaggia, and Cafe Spiaggia. She was nominated as a Rising Star Pastry Chef in 2015, recruited to consult for Anheuser-Busch, and her work has been featured in the Chicago Tribune, Food and Wine, Chicago Magazine, the Chicago Reader, the Windy City Times, Michigan Avenue Magazine, Dish, Swide,
Splash, Starchefs.com, WCIU-TV Chicago, and numerous local, national, and international food blogs.
Melanie's characteristic tenacity is evident beyond the accolades she has racked up.

After visiting Philly and witnessing its vibrant food scene, she decided then that this was where the venture needed to happen, sparking the entrepreneurial journey currently underway. After 18 months of planning, fundraising, and marketing for the venture, Melanie left her high profile position in Chicago, sold the condo she and Liz owned, and they moved to Philly in November of 2016 to begin the next chapter.

Since then, it's been all Flow State all the time!

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This loan is special because:

It helps a female entrepreneur fund her working capital needs to expand her cafe, which provides a unique space for her local community.

More about this loan

Business Description

Flow State CoffeeBar is a multi-angle solution to the cafe conundrum for telecommuters, who frequent cafes in hopes to snag coffee, free wifi, AND a table if luck has it. Co-working spaces are designed with work-related amenities in mind but don't offer a food menu. Few food and drink spots are designed to be the perfect telecommuter's haven. We envision Flow State to be a perfect marriage of cafe and co-working space that inspires creativity and productivity by serving up freshly made food, the perfect cup of coffee, and an inviting environment.

Co-working amenities include reservable tables, ample outlets, and secure, high-speed wi-fi. Every customer coming through our doors will discover the thing that keeps them returning. It might be that convenient cup of well-made coffee before starting the day or one of Melanie's obsessively crafted pastries or gelati.

We have enjoyed getting to know our neighbors and friends in the River Wards, and we will continue to do that by hosting fun culinary events and collaborations with those who are equally curious about us and the world all around.

We have plans to grow our humble coffee shop into a lively locale for the night birds to meet with friends over a beer or three.

Our biggest challenge has been getting funded as a new business. Lenders want businesses to be established before they will consider a loan. As a new business with new ideas, banks do not consider us or our potential. It has been due to community-focused organizations such as Kiva and the NKCDC that we have been able to start with literally nothing but our ideas, our friends and family, and to have arrived where we are now-- with a finished space full of coffee and baking equipment ready to go.

What is the purpose of this loan?

This loan will fund the items we need to be able to open our doors to serve customers. Whereas other business loans have made it possible for us to design and build a space that will inspire our customers as much as it inspires us, the Kiva loan will buy us:

- coffee from local roaster Square One,
- ingredients for Melanie's delicious pastries, cookies, and gelati,
- eco-friendly takeout-ware like compostable plastic cups, bowls, and utensils,
- electricity and gas to keep the lights on and the ovens hot.

While we do our best to deliver food, drinks, and a vibe that will grow our customer base, this loan can bridge the financial gaps that every new business experiences, and that, certainly, we will experience.

Loan length/repayment term

The loan length or repayment term is the number of months it takes from the point that the loan is disbursed to the borrower to the point when the last repayment is due to be paid to Kiva lenders.

Repayment schedule

A loan's repayment schedule describes the frequency with which repayments are sent to Kiva lenders:

Monthly: One repayment made per monthEnd of term: One repayment made at the end of the loan termIrregular: Any other repayment schedule

To see a detailed repayment schedule for a specific loan, click the "Repayment schedule" link on the loan profile under "Loan details."

What is the disbursed date?

The disbursed date indicates the date that the borrower receives their loan funds. Loan disbursal for loans on Kiva can happen anywhere from 30 days before to 90 days after the loan is posted on the Kiva website. Direct loans are always post-disbursed, and will be done only after the loan has fully fundraised on Kiva.

In the case of partner loans, many of Kiva's Field Partners choose to disburse loan funds before the loan request is posted on Kiva. We allow pre-disbursal because it ensures that the funds reach the borrower as soon as they are needed. Loan funds from Kiva lenders then go to backfill that amount and as a lender you assume the risk of the loan. By doing this, our Field Partners assume the risk that, if the loan isn't funded by Kiva lenders, the Field Partner has to fund the loan without any funds from Kiva lenders.

If a partner loan is not pre-disbursed, it will be listed on Kiva with an expected "post-disbursed" date. If a post-disbursed loan is not funded on Kiva, there is a chance that the borrower may not receive their loan. Some Field Partners choose to disburse loans with other sources of funding, while other partners don't have the resources available to fund loans without Kiva lenders' support. No direct loans will be disbursed unless they fully fundraise on Kiva.

What is currency exchange loss and how could it affect my Kiva loans?

When lending internationally, the local currency in a borrower's country may lose some of its value compared to the US dollar -- requiring the partner to use more of its local currency to reimburse Kiva in USD. We offer Field Partners the option to protect themselves against severe currency fluctuations (a USD appreciation of over 10% relative to their local currency) by sharing any losses greater than 10% with Kiva lenders. By bearing these losses, lenders protect the partner and its borrowers from catastrophic currency devaluations.

Potential for currency exchange loss is noted on every loan profile under the loan details:

"Covered" means the Field Partner has opted to cover any currency loss. Lenders will not bear losses due to currency fluctuation.

"Possible" means the Field Partner has opted not to cover these losses, and lenders face additional risk because they will bear losses greater than 10%.

"N/A" means the Field Partner disburses loans to borrowers in USD so their loans are not subject to any currency fluctuation.

Do Kiva borrowers pay any interest on their loans?

Yes, most Kiva borrowers do pay interest to our Field Partners in some form. Kiva and Kiva lenders themselves do not receive interest on these loans.

Our partners collect interest from borrowers because there are many operational expenses associated with microfinance in developing markets, especially in rural areas. Many of Kiva's Field Partners also provide additional services alongside their loan products such as business training, financial literacy lessons, or health services.

Kiva will not partner with an organization that charges unreasonable interest rates, and we require Field Partners to fully disclose their rates. In addition, we only partner with microfinance institutions and organizations that have a social mission to serve the poor, unbanked, and underserved.

There are some 0% interest loans on Kiva, including all direct loans in the United States. To learn more about the interest rates Kiva borrowers pay, you can review the "Average cost to borrower" field on a loan profile.

What is a risk rating?

There are many levels of risk associated with Kiva loans, which are explained on our website here: kiva.org/about/risk

The Field Partner risk rating reflects the risk of institutional default associated with each of Kiva’s Field Partners. A 0.5-star rating means the organization has a relatively higher risk of institutional default, while a 5-star rating indicates the organization is at a relatively lower risk of default, based on Kiva's analysis and the available information. Field Partners with the lowest credit tier undergo a lighter level of due diligence and do not receive a risk rating; instead, in places where a risk rating would normally appear, these partners are labeled as “Experimental.” For more information, see "What is an Experimental Field Partner?"

Direct loans also do not receive a formal risk rating. Instead, these loans are approved through “social underwriting”, where trustworthiness is determined by friends & family lending a portion of the loan request, or by a Kiva approved Trustee vouching for the borrower. Direct loans will appear as "Unrated" and lenders should always assume these loans represent the highest level of repayment risk on Kiva.

How are loans facilitated?

Kiva loans are facilitated through 2 models, partner and direct, that enable us to reach the greatest number of people around the world.

For partner loans, borrowers apply to a local Field Partner, which manages the loan on the ground. Field Partners are responsible for screening borrowers, disbursing loans, posting borrowers to the Kiva website for funding, collecting repayments and otherwise administering Kiva loans on the ground to borrowers.

For direct loans, borrowers apply through the Kiva website and may or may not be endorsed by a Trustee. Unlike Field Partners, Trustees don't handle any financial transactions or have any duty to repay loans on behalf of their borrowers. Instead, Trustees take the role of providing support and business advice to their borrowers throughout the term of the loan.

More information about successive and concurrent loans

Field Partners often work with borrowers over time to help them build credit and expand their businesses. In order to make it easier for partners to post loans for borrowers who have been listed on Kiva before, we allow some partners the ability to relist a loan without having to re-enter all of the borrower's information. When this occurs, you'll see an updated loan description, as well as excerpts of the original descriptions from an earlier loan.

Most borrowers take out loans consecutively, meaning that they receive a second loan after having repaid the first. However, sometimes our Field Partners give out concurrent loans, allowing borrowers to take out one primary loan and a secondary "add-on" loan along with it. These additional loans are typically smaller than the borrower's primary loan and serve a different purpose. We trust our partners to determine whether a borrower has the means to be able to repay a successive or concurrent loan.

Trustee type

This is the type of organization that the Trustee is.

What are Trustee tiers?

Trustee tiers determine the number of endorsements a Trustee can make and what loan sizes they can endorse. All Trustees begin as a pilot and can advance in tier depending on their borrowers' repayment performance.
For for more information about Trustee tiers, visit: kivaushub.org/trustee-tiers

Trustee location

This is the location where the Trustee is based.

Trustee's time on Kiva

Time on Kiva shows the number of months a Trustee has been endorsing loans on Kiva for funding.

Kiva borrowers (direct loans)

This figure represents the total number of loans endorsed by this Trustee that have fundraised on Kiva.

Trustee's total loans

This figure includes the total amount of loans that this Trustee has endorsed. This excludes refunded loans.

Fundraising / raised

This figure represents the number of loans endorsed by this Trustee that are currently fundraising or fully funded.

Paying back on time

This figure represents the number of loans endorsed by this Trustee that are currently paying back on their repayment schedule.

Trustee's loans paying back late

This figure represents the number of loans endorsed by this Trustee that are currently paying back behind their repayment schedule.

Repaid in full

This figure represents the number of loans endorsed by this Trustee that have completed all repayments.

Trustee loans defaulted

This figure represents the number of loans endorsed by this Trustee that have ended in default.

Trustee repayment rate

This figure is the total amount of money currently collected by borrowers endorsed by this Trustee, divided by the total amount of money currently due from borrowers. This excludes payments made ahead of schedule.

Why are you endorsing Melanie?

We are very excited to welcome Flow State Coffee Bar into the neighborhood. Maggie and her team have been very involved in community events since they began pursuing this business concept. They are committed to offering needed products and services to the neighborhood through a unique business model. Not only are their desserts delicious but their business model brings something new to the neighborhood. What is most inspiring about Flow State Coffee Bar, is the passion each person brings to the team. Flow State Coffee Bar has all the ingredients to be a successful business and community hub.

Loan length/repayment term

The loan length or repayment term is the number of months it takes from the point that the loan is disbursed to the borrower to the point when the last repayment is due to be paid to Kiva lenders.

Repayment schedule

A loan's repayment schedule describes the frequency with which repayments are sent to Kiva lenders:

Monthly: One repayment made per monthEnd of term: One repayment made at the end of the loan termIrregular: Any other repayment schedule

To see a detailed repayment schedule for a specific loan, click the "Repayment schedule" link on the loan profile under "Loan details."

What is the disbursed date?

The disbursed date indicates the date that the borrower receives their loan funds. Loan disbursal for loans on Kiva can happen anywhere from 30 days before to 90 days after the loan is posted on the Kiva website. Direct loans are always post-disbursed, and will be done only after the loan has fully fundraised on Kiva.

In the case of partner loans, many of Kiva's Field Partners choose to disburse loan funds before the loan request is posted on Kiva. We allow pre-disbursal because it ensures that the funds reach the borrower as soon as they are needed. Loan funds from Kiva lenders then go to backfill that amount and as a lender you assume the risk of the loan. By doing this, our Field Partners assume the risk that, if the loan isn't funded by Kiva lenders, the Field Partner has to fund the loan without any funds from Kiva lenders.

If a partner loan is not pre-disbursed, it will be listed on Kiva with an expected "post-disbursed" date. If a post-disbursed loan is not funded on Kiva, there is a chance that the borrower may not receive their loan. Some Field Partners choose to disburse loans with other sources of funding, while other partners don't have the resources available to fund loans without Kiva lenders' support. No direct loans will be disbursed unless they fully fundraise on Kiva.

What is currency exchange loss and how could it affect my Kiva loans?

When lending internationally, the local currency in a borrower's country may lose some of its value compared to the US dollar -- requiring the partner to use more of its local currency to reimburse Kiva in USD. We offer Field Partners the option to protect themselves against severe currency fluctuations (a USD appreciation of over 10% relative to their local currency) by sharing any losses greater than 10% with Kiva lenders. By bearing these losses, lenders protect the partner and its borrowers from catastrophic currency devaluations.

Potential for currency exchange loss is noted on every loan profile under the loan details:

"Covered" means the Field Partner has opted to cover any currency loss. Lenders will not bear losses due to currency fluctuation.

"Possible" means the Field Partner has opted not to cover these losses, and lenders face additional risk because they will bear losses greater than 10%.

"N/A" means the Field Partner disburses loans to borrowers in USD so their loans are not subject to any currency fluctuation.

Do Kiva borrowers pay any interest on their loans?

Yes, most Kiva borrowers do pay interest to our Field Partners in some form. Kiva and Kiva lenders themselves do not receive interest on these loans.

Our partners collect interest from borrowers because there are many operational expenses associated with microfinance in developing markets, especially in rural areas. Many of Kiva's Field Partners also provide additional services alongside their loan products such as business training, financial literacy lessons, or health services.

Kiva will not partner with an organization that charges unreasonable interest rates, and we require Field Partners to fully disclose their rates. In addition, we only partner with microfinance institutions and organizations that have a social mission to serve the poor, unbanked, and underserved.

There are some 0% interest loans on Kiva, including all direct loans in the United States. To learn more about the interest rates Kiva borrowers pay, you can review the "Average cost to borrower" field on a loan profile.

What is a risk rating?

There are many levels of risk associated with Kiva loans, which are explained on our website here: kiva.org/about/risk

The Field Partner risk rating reflects the risk of institutional default associated with each of Kiva’s Field Partners. A 0.5-star rating means the organization has a relatively higher risk of institutional default, while a 5-star rating indicates the organization is at a relatively lower risk of default, based on Kiva's analysis and the available information. Field Partners with the lowest credit tier undergo a lighter level of due diligence and do not receive a risk rating; instead, in places where a risk rating would normally appear, these partners are labeled as “Experimental.” For more information, see "What is an Experimental Field Partner?"

Direct loans also do not receive a formal risk rating. Instead, these loans are approved through “social underwriting”, where trustworthiness is determined by friends & family lending a portion of the loan request, or by a Kiva approved Trustee vouching for the borrower. Direct loans will appear as "Unrated" and lenders should always assume these loans represent the highest level of repayment risk on Kiva.

How are loans facilitated?

Kiva loans are facilitated through 2 models, partner and direct, that enable us to reach the greatest number of people around the world.

For partner loans, borrowers apply to a local Field Partner, which manages the loan on the ground. Field Partners are responsible for screening borrowers, disbursing loans, posting borrowers to the Kiva website for funding, collecting repayments and otherwise administering Kiva loans on the ground to borrowers.

For direct loans, borrowers apply through the Kiva website and may or may not be endorsed by a Trustee. Unlike Field Partners, Trustees don't handle any financial transactions or have any duty to repay loans on behalf of their borrowers. Instead, Trustees take the role of providing support and business advice to their borrowers throughout the term of the loan.

More information about successive and concurrent loans

Field Partners often work with borrowers over time to help them build credit and expand their businesses. In order to make it easier for partners to post loans for borrowers who have been listed on Kiva before, we allow some partners the ability to relist a loan without having to re-enter all of the borrower's information. When this occurs, you'll see an updated loan description, as well as excerpts of the original descriptions from an earlier loan.

Most borrowers take out loans consecutively, meaning that they receive a second loan after having repaid the first. However, sometimes our Field Partners give out concurrent loans, allowing borrowers to take out one primary loan and a secondary "add-on" loan along with it. These additional loans are typically smaller than the borrower's primary loan and serve a different purpose. We trust our partners to determine whether a borrower has the means to be able to repay a successive or concurrent loan.

Trustee type

This is the type of organization that the Trustee is.

What are Trustee tiers?

Trustee tiers determine the number of endorsements a Trustee can make and what loan sizes they can endorse. All Trustees begin as a pilot and can advance in tier depending on their borrowers' repayment performance.
For for more information about Trustee tiers, visit: kivaushub.org/trustee-tiers

Trustee location

This is the location where the Trustee is based.

Trustee's time on Kiva

Time on Kiva shows the number of months a Trustee has been endorsing loans on Kiva for funding.

Kiva borrowers (direct loans)

This figure represents the total number of loans endorsed by this Trustee that have fundraised on Kiva.

Trustee's total loans

This figure includes the total amount of loans that this Trustee has endorsed. This excludes refunded loans.

Fundraising / raised

This figure represents the number of loans endorsed by this Trustee that are currently fundraising or fully funded.

Paying back on time

This figure represents the number of loans endorsed by this Trustee that are currently paying back on their repayment schedule.

Trustee's loans paying back late

This figure represents the number of loans endorsed by this Trustee that are currently paying back behind their repayment schedule.

Repaid in full

This figure represents the number of loans endorsed by this Trustee that have completed all repayments.

Trustee loans defaulted

This figure represents the number of loans endorsed by this Trustee that have ended in default.

Trustee repayment rate

This figure is the total amount of money currently collected by borrowers endorsed by this Trustee, divided by the total amount of money currently due from borrowers. This excludes payments made ahead of schedule.

Why are you endorsing Melanie?

We are very excited to welcome Flow State Coffee Bar into the neighborhood. Maggie and her team have been very involved in community events since they began pursuing this business concept. They are committed to offering needed products and services to the neighborhood through a unique business model. Not only are their desserts delicious but their business model brings something new to the neighborhood. What is most inspiring about Flow State Coffee Bar, is the passion each person brings to the team. Flow State Coffee Bar has all the ingredients to be a successful business and community hub.

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